Overview

* PennyMac Q2 revenue misses analyst expectations, adjusted pretax profit also missed, per LSEG data

* Net income for Q2 was $136.5 mln

* Co declared a cash dividend of $0.30 per share

Outlook

* Company expects PennyMac Mortgage Investment Trust (PMT) to acquire all jumbo correspondent production in Q3 2025, under a renewed mortgage banking services agreement with PMT

* Company focuses on AI to enhance production and servicing operations

* PennyMac aims for strategic portfolio growth and core business objectives

Result Drivers

* AI IMPLEMENTATION - Technological enhancements, including AI, expected to improve efficiency and operations, per CEO David Spector

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $444.70 $553.80

Revenue mln mln (8

Analysts

)

Q2 Net $136.50

Income mln

Q2 Miss $143.70 $202.40

Adjusted mln mln (7

Pretax Analysts

Profit )

Q2 $0.3

Dividend

Q2 $76.40

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the banks peer group is "buy"

* Wall Street's median 12-month price target for PennyMac Financial Services Inc ( PFSI ) is $123.00, about 17.1% above its July 21 closing price of $101.94

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)